High earner but nursery fees still more - am I missing something?

[Mushroo]

We’re due our second next year, and I’m planning out nursery etc.

Im a ‘high’ earner on paper, but I still think I’m better off dropping to 4 days a week, am I missing anything? (I currently work full time with one at nursery).

(we have grandparent help one day a week, so the decision is me at work full time, and 4 days at nursery, or me 4 days a week and 3 days at nursery

Cost of 4 days a week at nursery after funded hours and tax free childcare.

• £669, two kids = £1338

3 days:

• £376pcm, two kids = £752pcm

Difference in price = £586

My current take home is c. £3550, after student loans and pension contributions.

I had a look on the salary calculator, and keeping my pension contributions the same (so I don’t lost out there) the take home for 80% is £3100.

So I’d be down c.£400pcm dropping my hours, but the price difference in nursery fees is £586.

So I’d be almost £200pcm better off working less?! Is that right or am I missing something obvious….

If that’s right it’s mad that a ‘high’ earner can’t out earn nursery fees!

Obviously we don't know your industry or how dropping to 4 days will be perceived.

Be aware though, and it will remain very unsaid, that it's sending out a signal. You've picked your side.

I'd factor in what you will be missing out on paying into your pension and ask DH to make it up.

Going part time is the biggest economic risk women take, second only to having kids unmarried.

Go in with your eyes open.

You're better off because of the 30 hours free childcare, you're still taking that so reducing a day is just coming from your contribution to childcare not the funded 30 hours. Your pay per day is still more than what a full day childcare would be x2 without any funding.

I returned to work full time after having my first, he went to nursery full time as we have no family help. I dropped down to 4 days (work and nursery) after about a year as it worked out better for our family, much like your calculations. I got to spend an extra day with my little one and the drop in salary and nursery fees evened each other out, so we weren’t any worse or better off.

Finances aside, working 4 days a week was one of the best decisions I made when my children were in nursery, work life balance feels soo much more “balanced” your weekends are longer (if you choose Monday or Friday) you have more quality time with your kids, it also sounds like it makes more sense with the nursery fees! You’re also not considered “part time” so no impact to prospects in work etc! Go for it! Best decision you’ll make x

Where are you based? 2 kids in nursery for that cost is pretty good

Even with funding, 4 days would be circa £900 per child for us!

This. The fact that DH isn't going to do it is where the gender pay gap really kicks in. The financial 'benefit' of dropping a day at nursery is temporary - it's normally a financial drag in the long term as you've ruled yourself of lots of options at work. Fine if you're happy with that but there are few industries where it's not the case.

@Whoknowshere and others saying DH needs to pay half, I don’t know if I’m being dense but what does that mean in practice?

We have a family pot of about £7k.

4 day fees - c.£1400

so we have £5600

If we have 3 days of nursery fees

Family pot of £6650
Fees of c. £750

So we have £5900. (Obviously numbers are very rough and ready).

To get 3 days of nursery fees, one of us needs to work 4 days a week.

Because that won't change. You could add his income into the calculations but the final numbers would still be the same.

Op that’s not high earner but a decent salary if combined with partners. Ensure you’re making pension contributions because that would be insane not to.

This is exactly what I’ve done, though the figures are slightly different.

As an household, we are actually better off me working compressed hours 0.9FTE and taking one day off a week, than if I work full time and we pay for the fifth day in nursery. Crazy. And a no brainer!

Same here it’s all one pot. The sums don’t change, as you say!

I understand the family pot situation, but I think it's important to be thinking of your drop in salary and the money saved in terms of only contributing half.

If compressed hours or using accrued annual leave is an option this is a great hack. 4 days is the perfect balance and I highly recommend it!

I have a similar earning to you, base salary for full time was 85k, but 13.5% pension contribution knocked the take home pay down a fair bit. I did the numbers and the work life balance check and settled on decreasing to 0.9WTE over 4 days. I technically had a 1 hour unpaid lunch (funny joke cos I barely have time to wee at work let alone lunch break), so I negotiated that down to 30min unpaid break and I only had to extend my working day by 30 mins (now do 8.30-5.30 4 days). That was actually so much better than reducing to 0.8wte. Aside from the money, how will your working life be, I’m assuming you have a high level of responsibility at your pay, realistically will you loose 20% of your work or will you still be expected to deliver 100% of what you do now for less pay? If you decide to go for reduced hours, have clear written agreement about which work you will no longer do

also do you claim child benefit? Depending who is the higher earner, you could obviously keep more CB which buffers a pay reduction ever so slightly in your calcs

If your the same lady off Reddit post this morning what your failing to mention in this is your husband is a very high earner , why you even need to question this is bizarre when he can afford it

I put high earner because in this other thread,

https://www.mumsnet.com/talk/am_i_being_unreasonable/5423400-to-wonder-how-other-families-get-to-the-end-of-the-month?page=1

the OP was absolutely torn to shreds asking for advice on budgeting a £90k household income, and we obviously have a lot more than that.

um no? DH earns about the same I do.

If you can afford to go to 4 days now it will make lots of things easier, you won't lose your mind dropping the kids off every morning in a mad rush, have 1 reset day per week, and will make life easier when it comes to school for your older one as it will be 1 less day to cover. I found the same that there was a fine balance between days off and childcare costs. Having done the ft thing the whole way through my youngest, and now having 1 day off per week I'd have changed it sooner if I could have afforded it. Good luck. Sussing out some kind of balance is very hard work xx

She’s earning 75k. That is classed as a high earner. Whether or not that’s low for Surrey or whatever.

The fees sound low - are those numbers correct for the age range they will be in? There's a big difference at mine between under and over 3 yr olds.

@Gimmethemoney yes, ours have just simplified everything so everyone pays the same (it was the new fees that prompted me to do the calculations!).

And if I’m wrong and nursery fees do go up, it strengthens the argument for dropping my hours

£150K household income is high even by MN standards

4 days nursery for 2 children is going to be expensive, but affordable on your household income.
If it will be easy enough to go back full time when the children are older, then part time will be lovely (speaking as someone who pretty much had to work full time while raising 2 children).

Christ this thread is depressing. The ‘you’ll be seen to be ‘picking your side’ and ‘what about your career prospects if you drop down to 4 days?’

I would expect ANY parent to pick their children over work, surely that’s normal? I think I must live in a different world as although I have professional friends (Consultant A&E Dr, Head of HR, Senior Software Developer, Partner in a large animal vet firm etc) none have gone back full time since having children, all gone back 3-4 days a week. It hasn’t been career suicide for any of them and shock horror, spending 3-4 days a week with their pre-school age children has been lovely for them.

Why is it seen as so weird to drop down to part time after kids?! What’s the point in having them if you’re only going to see them at the weekend?

That's an interesting approach, but makes it easier for sure. Good luck with making the decision!

The other thing to consider is that you could use your accrued annual leave to work a short week for the first few months after you return and then ask for flexible work at the end of that period.

I'd go part time for a few year if possible. You'd be better off financially and have more time to spend with your babies! Win win!

First world problems 🙄